Question
QS 19-12 Entry for over- or underapplied overhead LO P4 A companys Factory Overhead T-account shows total debits of $636,000 and total credits of $751,000
QS 19-12 Entry for over- or underapplied overhead LO P4
A companys Factory Overhead T-account shows total debits of $636,000 and total credits of $751,000 at the end of the year. Determine whether there is over- or underapplied overhead using the T-account below.
Prepare the journal entry to close the balance in the Factory Overhead account to Cost of Goods Sold.
Exercise 19-11 Overhead rate; costs assigned to jobs LO P3
In December 2016, Shire Computers management establishes the 2017 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $715,000 of overhead costs and $550,000 of direct labor cost in year 2017. During March 2017, Shire began and completed Job 13-56.
1. What is the predetermined overhead rate for 2017? 2. Using the information on the following job cost sheet, determine the total cost of the job.
Exercise 19-14 Adjusting factory overhead LO P4
Storm Concert Promotions | Valle Home Builders | |||||
Actual indirect materials costs | $ | 12,100 | $ | 6,900 | ||
Actual indirect labor costs | 56,100 | 46,700 | ||||
Other overhead costs | 16,700 | 48,900 | ||||
Overhead applied | 91,900 | 97,900 | ||||
Storm Concert Promotions Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Valle Home Builders Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
Exercise 19-15 Factory overhead computed, applied, and adjusted LO P3, P4
In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by using the following cost predictions: overhead costs, $720,000, and direct materials costs, $600,000. At year-end 2017, the companys records show that actual overhead costs for the year are $597,000. Actual direct material cost had been assigned to jobs as follows.
Jobs completed and sold | $ | 360,000 | |
Jobs in finished goods inventory | 70,000 | ||
Jobs in work in process inventory | 60,000 | ||
Total actual direct materials cost | $ | 490,000 | |
1. Determine the predetermined overhead rate for 2017. 2&3. Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.
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